DELTA’s 1H22 core profit accounts for 64% of Bloomberg consensus forecast of Bt9.7bn (against our previous core profit assumption of Bt9.8). The firm’s 2H core profit is typically higher than in 1H. Therefore, we expect to see the flow of consensus earnings upgrade of about 40% in the foreseeable future. TRADING BUY!
2Q22 core earnings were 38% above our projection
DELTA posted a 2Q22 net profit of Bt4.3bn, up 158% YoY and 53% QoQ. Stripping out a FX gain (Bt346m), core earnings would be Bt3.9bn, up by 174% YoY and 74% QoQ. The core number was 38% above our model and far above the consensus’s estimate by 55%, due to a fatter GM and lighter SG&A than we had assumed.